Despite opposition of FM Ajit Pawar; Energy min Nitin Raut plans to provide free power

 Committee ask to submit report within three months

Mumbai: A debt ridden Maharashtra Government led by Chief Minister Uddhav Thackeray is planning to provide free power supply to residential and small traders consumers up to consumption of 100 units. Despite Finance minister Ajit Pawar already rejecting the plan of Energy minister Dr Nitin Raut for supplying ‘free power supply’, the minister (Raut) claimed that his scheme will not be opposed by finance department.

Speaking with ‘TheNews21‘ at Vidhan Bhavan on Thursday, Dr Raut said that a committee headed by Principal Secretary (Energy) has started work on bringing policy to supply free power to the consumers.

The committee comprises members including Managing Director of all three companies related to power – Mahadiscom, Mahatransco and Mahagenco.

Energy minister Dr Raut has set a five point target to achieve his plan to provide free power up to 100 unit consumption, reduce power tariff, support industries, savings in expenses and provide continues four hours electricity in day time in rural Maharashtra.

Dr Raut has announced his plan to provide free power, whereas he was criticised by his senior colleague is state cabinet and finance and planning minister Ajit Pawar. Pawar had said that ‘ya babala kahi kalat nahi’ (this man do not understand anything) and mocked Dr Raut for his non practical scheme.

When asked Dr Raut about Pawar’s oppose to his ambitious plan, the minister said, ” Pawar will oppose the scheme when and only when it will go to finance department for the approval.” Dr Raut hinted that he will implement the free power scheme without getting nod of finance department. He said that it will not need to get approval of finance and planning department.

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Raut said that let him give breathing period of three months. “I have informed the committee to work on planning of his ministry. They have already started on it and will submit recommendation report,” said Dr Raut.

There are 2.66 crore total consumers who consumes electricity across the state. Of which consumers who uses high tension (HT) power are 22,000 whereas rest are low tension (LT) power users. 

LT consumers comprises 42.5 lakh farmers, 1.95 crores are domestic consumers, 3.5 lakh are Below Poverty Limit (BPL) consumers, 19 lakhs are commercial consumers whereas as 4 lakh are industrial consumers. 

Though, the energy minister has not yet come to any conclusion about actuals beneficiaries of free power supply, there is possibility that Rs 7000 crore will be the burden over state exchequer, if consumers who use electricity between 0 to 100 unit will be selected as beneficiaries of this scheme.

According to power expert, if the state will keep cap of beneficiaries between 0 to 100 unit consumption, the state will need to make provision of at least Rs 7000 crore in budget. 

Out of total 1.95 crore domestic consumers, 1.37 crore are those who use power consumption between 0 to 100 units. 50 lakh consumers consumes power unit between 101 to 300, five lakh consumers consumes power between 301 to 500 units and around two lakh consumers uses power over 501 units.

As per state power generation utility MahaGenco own website, MahaGenco has an installed capacity of 13,602 MWs. This comprises of Thermal (nearly 75%, i.e. 10,170 MW) and a Gas based generating station at Uran, having an installed capacity of 672 MW.

The Hydro Electric Projects in the State of Maharashtra were designed, erected and commissioned through the Water Resource Department (WRD) of GoM. After commissioning, the hydro projects were handed over on long term lease to MahaGenco for Operation and Maintenance. Presently there are 25 hydel projects, having capacity of 2580 MW. MahaGenco also has commissioned 180MWp Solar Power Projects till date as part of promoting Renewable Energy resources.

This is not the first time that the Congress has made the promise of free electricity. It may be recalled that the Congress ahead of the 2014 Assembly elections had promised free power. But soon went back on its promise citing financial constraints.

In 2004, ahead of the Assembly elections, then chief minister Sushilkumar Shinde in a bid to steal the thunder out of the Shiv Sena chief late Balasaheb Thackeray’s promise of free power to farmers, had announced free power. But after coming to power the scheme was winded up within few months. When asked about it, Shinde had then famously had remarked “it was part of our election strategy”.

However, the same Shinde after becoming the Union Power Minister agreed with then Prime Minister Dr Manmohan Singh stand against free power.

Pratap Hogade, President, Maharashtra Veej Grahak Sanghatna said “I will welcome the decision if government will provide free power supply up to 100 units. However, state should clarify whether the beneficiaries will be consumers who use unit not more than 100 units or other consumers will get benefit up to 100 units and bill will be charged after 101 units. But I’m surprised, when there is no demand of free power supply from people, why the government wants to bring burden over debt ridden state. Instead, the minister should focus on bringing corruption in farm pump scheme worth Rs 10,000 crore and minimise tariff of power unit for industrial consumers”.

Dr Nitin Raut, Minister for Energy, remarked “the committee set up to recommend state about how can we provide free power supply to consumers will submit its report within next three months. It is my scheme and I will implement it”.